Cockerell Energy LLC offered me $6,500.00 PMA for 15 NMA… $97,500.00 total.
There was a TBD associated with exhibit A of the offer.
I signed a letter of intent and sent a signed and notarized deed.
All the paperwork was correct and proper.
Closing should be on or about 1/30/2020.
However, I just received a check via certified mail for $5,000.00…not $97,500.00.
Where and what is that?
Did the offer change without notifying me?
Did the TBD mean that the offer was subject to further determination?
Did I just get screwed?
My blood pressure won’t take much more of this all bidnuss (oil business) crap.
Anyone want to give me a lesson in “Mineral Rights for Dummies”?
They NEVER answer a phone.
I received an email response to a WTF request for more info but the email I got back was more or less a “We will get back to you” brush-off.
I am rereading everything but it looks like they had the right to change the offer at any time.
I never received the mandatory notification of change so maybe I am not screwed.
I sure wish I had contacted an attorney before signing anything.
If I made a $97,000.00 mistake I won’t sleep very good for years.
It could be that you owned less than the 15 net mineral acres and they are paying you less for it, which is usually part of the deal. It could be that you owned minerals at a lower royalty rate than they originally expected. A lot of those contracts are quoted at 3/16, but include language that they can pay you less if you have a lower royalty rate, such as 1/8. I would continue to try to get more information from the company.
That description is the gross acre tract that you own a part of. I assume you don’t know how many acres you actually owned under that tract. Based on the information provided, they paid you for 0.769 net acres. If you think you owned 15 acres, you should contact an attorney ASAP.
